What was the net cash used in investing activities for Clear Pest Pros in 2022?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
December 31, 2024 | | | | |
Consolidated Statements of Cash Flows (dollars in thousands)
| Year ended December 31, | 2024 | 2023 | 2022 (as restated) |
|---|---|---|---|
| Cash Flows from Operating Activities | |||
| Consolidated net loss | $ (11,108) | $ (44,277) | $ (6,330) |
| Adjustments to reconcile consolidated net | |||
| loss to net cash (used in) provided by | |||
| operating activities: | |||
| Depreciation | 505 | 591 | 490 |
| Amortization of intangible assets | 4,380 | 4,380 | 5,169 |
| Credit (recovery) loss | (296) | 627 | 6,949 |
| Loss on disposal of property and equipment | 781 | - | - |
| Impairment of goodwill | 10,519 | 45,537 | 1,266 |
| Impairment of intangible assets | - | - | 4,952 |
| Deferred income taxes | 357 | 265 | (2,595) |
| Noncash lease expense | 67 | (121) | (44) |
| Changes in operating assets and liabilities | |||
| that provide (use) cash: | |||
| Accounts receivable | (459) | 1 | (3,560) |
| Inventory | (2,619) | (1,289) | (1,523) |
| Notes receivable | 970 | 1,506 | 3,607 |
| Prepaid expenses and other assets | 40 | (166) | 473 |
| Deferred commissions | 223 | 284 | (92) |
| Related party | (2,864) | (845) | (7,126) |
| Accounts payable | 609 | (652) | (191) |
| Accrued and other current liabilities | (1,284) | 518 | (534) |
| Deferred revenue | (1,104) | (2,407) | (2,282) |
| Net Cash (Used in) Provided by Operating | |||
| Activities | (1,283) | 3,952 | (1,371) |
| Cash Flows from Investing Activities | |||
| Purchases of property and equipment | (593) | (1,109) | (581) |
| Payments made for patents and trade names | (54) | (78) | (170) |
| Net Cash Used in Investing Activities | (647) | (1,187) | (751) |
| Net (Decrease) Increase in Cash | (1,930) | 2,765 | (2,122) |
| Cash, beginning of year | 4,482 | 1,717 | 3,839 |
| Cash, end of year | $ 2,552 | $ 4,482 | $ 1,717 |
| Classification of Cash | |||
| Cash | $ 1,242 | $ 3,701 | $ 1,372 |
| Restricted cash | 1,310 | 781 | 345 |
| Total Cash | $ 2,552 | $ 4,482 | $ 1,717 |
| Supplemental Cash Flow Information | |||
| Cash paid for taxes | $ 139 | $ 185 | $ 161 |
| Sig |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the net cash used in investing activities in 2022 was $(751). This indicates that Clear Pest Pros spent more cash on investing activities than it generated from them during that year. These activities typically include purchases of property, equipment, and intangible assets like patents and trade names.
For a prospective franchisee, this figure provides insight into how Clear Pest Pros is investing in its own growth and infrastructure. A consistent pattern of investing activities might suggest a commitment to long-term development, although negative cash flow in this area needs to be considered in the context of overall financial performance. It is important to note that the purchases of property and equipment totaled $(581) and payments made for patents and trade names totaled $(170) in 2022.
Franchisees should consider this information alongside other financial metrics to assess the financial health and stability of Clear Pest Pros. Understanding the specific investments made by the company can also help franchisees evaluate whether these investments are likely to benefit their own operations. It would be prudent for a potential franchisee to inquire about the nature of these investments and their expected return.